The US Dollar Index was rejected in the resistance area yesterday and fell towards new lows. Comments of J.Yellen after the FOMC meating weakened the US dollar and this was a bearish signal implying that we could see a deeper correction of the greenback over the coming weeks.
Green line – trend line resistance
Red line- broken support, now resistance
The US Dollar Index reached the Ichimoku cloud and got rejected. The price continues to be in a bearish trend as long as it is below the Ichimoku cloud. We continue to see lower lows and lower highs. Next important support is at 93.10. Unless bulls manage to reverse the US Dollar Index above 95.20, we should expect more selling pressures to come over the coming weeks.
The weekly chart has become even more bearish with the price trading below the kijun-sen support and heading towards a low of 93.10. A breakout below that level will increase chances of a deeper correction towards the cloud support and 50% retracement at 90.
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